On receiving the bank cutoff statement, the auditor should trace:
A. Deposits listed on the cutoff statement to deposits in the cash receipts journal.
B. Checks dated subsequent to year-end to the outstanding checks listed on the year-end bank reconciliation.
C. Deposits in transit on the year-end bank reconciliation to deposits in the cash receipts journal.
D. Checks dated prior to year-end to the outstanding checks listed on the year-end bank reconciliation.
Answer: D
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Which one of the following is an advantage of LIFO?
A) In periods of rising prices, less income tax is paid. B) In periods of rising prices, more holding gains are reported in net income. C) Record keeping and financial statement preparation are easier. D) Conservative income statements and balance sheet disclosures result from falling prices.
The payback method typically assumes that all cash inflows are reinvested to yield a return equal to
a. the discount rate. b. the hurdle rate. c. the internal rate of return. d. zero.
_____ is market segmentation on the basis of personality, motives, lifestyles, and geodemographics.
A. Benefit segmentation B. Family life cycle segmentation C. Usage-rate segmentation D. Psychographic segmentation
Because large multinationals generate an average of nearly half of their revenues within their home region, some researchers have suggested that a regional strategy perspective is more appropriate than a global perspective.
Answer the following statement true (T) or false (F)